Economics

1. Economics • How many basic types of economic systems are there? • Name the economic systems. • Which economic system do most textbooks say is the most common throughout the world?

2. Economics • How many basic types of economic systems are there? 3 • Name the economic systems. • Which economic system do most textbooks say is the most common throughout the world?

3. Economics • How many basic types of economic systems are there? 3 • Name the economic systems. Traditional, Command, Market • Which economic system do most textbooks say is the most common throughout the world?

4. Traditional • Most economic decisions based on custom and habit (as things were done in the past) • Many found in rural areas • People depend on members of extended family • Work is often farming, herding animals, simple crafts or trades • Very little money changes hands • Bartering and trading goods and services replaces money • No SW Asia country has a primarily traditional economy

5. Command • More centralized economy • Government planning groups make most of the basic economic decisions for the workers • Decides which goods and services will be produced • Decides on prices of goods and wages for workers • No individual can start new business on their own • Government decides what to make, who owns the place where goods are made, what jobs the workers will do and how and where the goods produced will be sold

6. Market • A society’s economic decisions are made by individuals who decide what to produce and what to buy • Also called capitalism, free enterprise, or laissez-faire • Many countries in Southwest Asia use a market economy

7. Economics • How many basic types of economic systems are there? 3 • Name the economic systems. Traditional, Command, Market • Which economic system do most textbooks say is the most common throughout the world? Mixed. Mixed is not an economic system but rather a blending of two different types of systems.

8. Mixed • Nearly all modern countries have a mixed economy • Generally a combination of market and command

9. Economic Systems Pure Market Pure Command Mixed Economy

10. Economic Systems Pure Market Iran 45% Saudi Arabia 64% Israel 68% 0 100 Pure Command Mixed Economy

11. Economic Systems Pure Market Nigeria 55% South Africa 64% 0 100 Pure Command Mixed Economy

12. Economic Systems Pure Market North Korea 2% India 54% Japan 73% China 53% 0 100 Pure Command Mixed Economy

13. Israel • Relatively small area • Almost no natural resources • Economy based on advanced technology

14. Saudi Arabia • Located on the Arabian Peninsula it’s one of the largest countries in SW Asia • Much is desert with rich oil reserves • Can buy whatever they can’t produce • King and advisors make most decisions about how and where to use oil profits • Have invested much in technologies to produce goods they would not be able to do otherwise in a desert climate.

15. Iran • Has great oil wealth • A more mixed economy than Saudi Arabia in spite of government attempts to maintain control • Iran’s command economy hasn’t been very efficient in recent years • Many Iranians do not share in the oil wealth

16. Turkey • Located in the northwestern part of the M. E. • Istanbul – gateway between Europe and Asia • Turkey has been part of ancient trade routes for thousands of years • Least economic freedom • Airlines, railroads, telephone and television controlled by government • Government has been loosening their hold • More private ownership has been allowed • More laws enacted to protect business owners